Erste Hungary's H1 net loss widens 42% y/y to EUR 72.7mn.

By bne IntelliNews August 1, 2012
The Hungarian unit of Austrian Erste Bank posted a net loss of EUR 72.7mn in H1 2012, up from a net loss of EUR 51.2mn recorded a year earlier, the parent bank said in a statement. The Hungarian lenders net interest income dropped 7% y/y to EUR 175.9mn and its income from net fee and commission was also down 7.6% y/y to EUR 45.3mn in H1 2012. Losses under other result accounted for EUR 92.9mn in H1 2012, up from EUR 36.5mn a year earlier. On the positive side, the lender managed to cut administrative spending by 19.1% y/y and risk provisions by 31% y/y. The NPL ratio deteriorated to 24.6% at end-June 2012, up from 15.5% at end-June 2011 and 21.1% at end-2011. Erste Hungary has earlier announced a number restructuring measures in response to the deteriorating revenue outlook along with lower lending activity, higher provision-requirements, higher expenses resulting from the bank levy and the early loan repayment scheme and rising risks due to the adverse external environment. The bank has reduced the headcount by 10.9% y/y to a total of 2,598 employees at end-June 2012, while the number of branches in Hungary has been cut by 41 to 143.

Related Articles

Assets of Hungarys investment funds up 3.2% m/m in Feb 2013.

Hungary's investment funds had aggregate assets of HUF 3.657tn (EUR 11.98bn) as of end-February 2013, up by 3.2% m/m, MTI news agency reported citing data from the association of investment funds ... more

Hungary's number of employees down 0.6% y/y in Jan 2013.

The number of employees in Hungary's public and private sectors fell for the tenth straight month in January 2013 declining by 0.6% y/y to 2.574mn, the statistics office informed. The decline ... more

Hungarys MVM clears deal for purchasing E.ONs local units.

The assembly of state-owned Hungarian Electricity Works (MVM) has approved the purchase of the local gas business of German power utility E.ON, Hungary AM reported, citing local daily Magyar ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335
Dismiss